Dubai shares advanced, ending a four-day losing streak, after mortgage lender Tamweel reported a fivefold increase in second-quarter profit and global markets rebounded.
Tamweel, majority owned by Dubai Islamic Bank, surged the most in a week. DIB gained as much as 1.5 percent. The benchmark DFM General Index rose 0.3 percent to 1,525.83 at the 2:00 pm close in the emirate, bringing the gain for the month to 0.6 percent. The Bloomberg GCC 200 Index, which tracks the biggest 200 companies in the Gulf, rose 0.3 percent at 2:09 pm in Riyadh.
“Earnings season across the GCC has been very strong,” said Paul Cooper, Dubai-based managing director at Sarasin-Alpen & Partners Ltd, which oversees more than $500m in the Middle East, referring to the Gulf Cooperation Council. “We haven’t seen the benefit of that because of what was happening with global markets. Once the global environment settles down a little bit” shares will benefit from the earnings, he said.
Tamweel climbed 1.6 percent to 89 fils. Net income rose to AED27.7m ($7.5m) from AED5.4m a year earlier. Dubai Islamic Bank gained 1 percent to AED2.03.
In Qatar, Doha Bank advanced 1.8 percent, the most since May 10, to QR52. The lender reported a 13 percent increase in second-quarter profit to QAR339.4m ($93m), beating analysts’ estimates.
European shares rose for a second day amid optimism US lawmakers will agree on a plan to increase the country’s debt ceiling to avoid a possible credit-rating downgrade.
The benchmark Stoxx Europe 600 Index rose 1 percent. Asian shares and US futures also gained.
Kuwait’s benchmark index increased 0.5 percent and Qatar’s QE Index gained less than 0.1 percent. Abu Dhabi’s ADX General Index fell 0.4 percent. Oman’s MSM30 Index lost 0.3 percent and Bahrain’s BB All Share Index retreated 0.6 percent. Saudi Arabia’s Tadawul All Share Index climbed 0.8 percent.
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